The More Elastic the Supply and the Demand Curves Are

question 12

Multiple Choice

The more elastic the supply and the demand curves are, the:

• A) smaller the shortage a price ceiling will create.
• B) greater the shortage a price ceiling will create.
• C) smaller the surplus a price ceiling will create.
• D) greater the surplus a price ceiling will create.

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Definitions:

Eustress

Positive stress that is motivational and enhances one's functioning, as opposed to distress which has a negative effect.

Diligence

Characterizes careful and persistent work or effort.

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and behavioral expression.

Attitude

A psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor.